N.Y. Tax Law § 1201 — Taxes administered by cities of one million or more

§ 1201. Taxes administered by cities of one million or more.\nNotwithstanding any other provisions of law to the contrary, but subject\nto the applicable limitations and exemptions in part II of this article,\nany city in this state having a population of one million or more,\nacting through its local legislative body, is hereby authorized and\nempowered to adopt and amend local laws imposing in any such city any or\nall of the types of taxes set forth in the following subdivisions of\nthis section, such taxes to be administered and collected by the fiscal\nofficers of such city in the manner provided for in subpart A of part\nIII of this article:\n (a) Taxes on the privilege of doing any business, engaging in any\ntrade, calling, occupation or profession; owning, holding or occupying\nany property; possessing or exercising any franchise or franchises; or\non the gross receipts from sales to persons within such city; except\nthat no tax may be imposed pursuant to this subdivision on persons as to\nwhom authority to tax is granted by article two-b of the general city\nlaw. The rate of the taxes authorized in this subdivision shall not be\nin excess of one and seventeen one hundredths times the rate fixed for\nthe corresponding taxes by local law fifty-one of the city of New York\nfor the year nineteen hundred forty-one, and not in excess of two and\nthirty-five one hundredths times the rate fixed for the corresponding\ntax by local law forty-nine of the city of New York for the year\nnineteen hundred forty-one, except that as to persons engaged in the\nbusiness of operating or leasing sleeping and parlor railroad cars or of\noperating railroads other than street surface, rapid transit, subway and\nelevated railroads, the rate shall not be in excess of three and\nfifty-two one hundredths percent of gross income and except that as to\npersons engaged in the business of operating omnibuses with a carrying\ncapacity of more than seven persons, whether or not such persons are\nsubject to the supervision of the state department of public service,\nthe rate shall not be in excess of one and seventeen one hundredths\npercent of gross income or gross operating income, as the case may be.\n Notwithstanding the limitations as to rate provided above, for the\nyears nineteen hundred seventy-three and those following, such city may\nimpose, by local law, a surtax of forty per centum of the percentage of\ntax in effect pursuant to this subdivision in such city for the year\nnineteen hundred seventy-two.\n (b) (i) Taxes on each deed, other instrument or transaction (other\nthan a deed or instrument given solely as security or a transaction the\nsole purpose of which is to secure an obligation or indebtedness) by\nwhich any real property or any economic interest therein is conveyed or\ntransferred, measured by the consideration or value of the interest or\nproperty conveyed or transferred, (1) at a rate not to exceed one-half\nof one percent of such consideration or value with respect to\nconveyances made before July first, nineteen hundred seventy-one, or\nmade in performance of a contract therefor executed before such date,\n(2) at a rate not to exceed one percent of such consideration or value\nwith respect to (A) all conveyances made on or after July first,\nnineteen hundred seventy-one and before February first, nineteen hundred\neighty-two, or made in performance of a contract therefor executed\nduring such period, (B) conveyances or transfers made on or after\nFebruary first, nineteen hundred eighty-two of one, two or three-family\nhouses, individual cooperative apartments and individual residential\ncondominium units, or interests therein, and (C) conveyances or\ntransfers made on or after February first, nineteen hundred eighty-two\n(other than grants, assignments or surrenders of leasehold interests in\nreal property) where the consideration or value is less than five\nhundred thousand dollars, (3) at a rate not to exceed two percent of\nsuch consideration or value with respect to all other conveyances or\ntransfers made on or after February first, nineteen hundred eighty-two\n(other than grants, assignments or surrenders of leasehold interests in\nreal property) other than those conveyances or transfers specified in\nsubparagraphs four, five and six of this paragraph, (4) at a rate not to\nexceed one and four hundred twenty-five thousandths of one percent of\nsuch consideration or value where such consideration or value is less\nthan five hundred thousand dollars with respect to all conveyances or\ntransfers other than for conveyances or transfers of one, two or three\nfamily houses, individual cooperative apartments, and individual\nresidential condominium units, or interests therein (other than grants,\nassignment or surrenders of leasehold interests in real property), made\non or after August first, nineteen hundred eighty-nine, (5) at a rate\nnot to exceed one and four hundred twenty-five thousandths of one\npercent of such consideration or value where such consideration or value\nis more than five hundred thousand dollars with respect to conveyances\nor transfers of one, two or three family houses, individual cooperative\napartments, and individual residential condominium units, or interests\ntherein (other than grants, assignments or surrenders of leasehold\ninterests in real property), made on or after August first, nineteen\nhundred eighty-nine, and (6) at a rate not to exceed two and six hundred\ntwenty-five one thousandths of one percent of such consideration or\nvalue where such consideration or value is greater than five hundred\nthousand dollars with respect to all conveyances or transfers other than\nfor conveyances or transfers of one, two or three family houses,\nindividual cooperative apartments, and individual residential\ncondominium units, or interests therein (other than grants, assignment\nor surrenders of leasehold interests in real property), made on or after\nAugust first, nineteen hundred eighty-nine. Provided, however, that any\nsuch city may allow deductions, in determining the portion of any tax\nauthorized hereby the proceeds of which are payable to the New York city\ntransit authority as hereinafter provided, for any continuing liens on\nsuch interest or property where such interest or property is a one, two\nor three-family house, an individual cooperative apartment or an\nindividual residential condominium unit or where the consideration for\nor value of the interest or property conveyed or transferred is less\nthan five hundred thousand dollars, and may also allow an exemption not\nin excess of twenty-five thousand dollars on the consideration or value\nof the interest or property conveyed and provided, further, that such\ntaxes shall not apply if the contract for any such conveyance was made\nprior to May first, nineteen hundred fifty-nine. Anything to the\ncontrary notwithstanding, where the tax authorized hereby is imposed on\nthe consideration or value without any deduction for continuing liens,\nthe portion of the consideration or value ascribable to such liens shall\nnot be taxed at a rate in excess of one percent prior to July first,\nnineteen hundred eighty-two, in excess of two percent on and after July\nfirst, nineteen hundred eighty-two and before August first, nineteen\nhundred eighty-nine, or in excess of two and six hundred twenty-five\nthousandths of one percent on and after August first, nineteen hundred\neighty-nine, except that where the interest or property is a one, two or\nthree-family house, an individual cooperative apartment or an individual\nresidential condominium unit or where the consideration for a value of\nthe interest or property conveyed or transferred is less than five\nhundred thousand dollars the rate on and after July first, nineteen\nhundred eighty-two shall not be in excess of one percent. The amount of\nany pre-existing liens on such property or interest which continue\nthereon after the conveyance or transfer shall be deemed to be part of\nthe consideration or value for purposes of measuring the tax without\nregard to whether or not payment of the liens or of the underlying debt\nis assumed by the grantee or transferee. The tax authorized hereby may\nalso be imposed (A) prior to July first, nineteen hundred eighty-two, at\na rate not to exceed one percent, on the granting, assignment or\nsurrender of a leasehold interest in real property, other than a\nleasehold interest in a one, two or three-family house or an individual\ndwelling unit in a dwelling which is to be occupied or is occupied as\nthe residence or home of four or more families living independently of\neach other, where the consideration for or value of such grant,\nassignment or surrender is five hundred thousand dollars or more, (B) on\nand after July first, nineteen hundred eighty-two and before August\nfirst, nineteen hundred eighty-nine, at a rate not to exceed two\npercent, on the granting, assignment or surrender of a leasehold\ninterest in real property, except that in the case of a leasehold\ninterest in a one, two or three-family house or an individual dwelling\nunit in a dwelling which is to be occupied or is occupied as the\nresidence or home of four or more families living independently of each\nother, or where the consideration for or value of such grant, assignment\nor surrender is less than five hundred thousand dollars, the rate shall\nnot exceed one percent and (C) on and after August first, nineteen\nhundred eighty-nine, at a rate not to exceed two and six hundred\ntwenty-five thousandths of one percent, on the granting, assignment or\nsurrender of a leasehold interest in real property, except that in the\ncase of a leasehold interest in a one, two or three-family house or an\nindividual dwelling unit in a dwelling which is to be occupied or is\noccupied as the residence or home of four or more families living\nindependently of each other where the consideration for or value of such\ngrant, assignment or surrender is less than five hundred thousand\ndollars, the rate shall not exceed one percent, or in the case of a\nleasehold interest in a one, two or three family house or an individual\ndwelling unit in a dwelling which is to be occupied or is occupied as\nthe residence or home of four or more families living independently of\neach other where the consideration for or value of such grant,\nassignment or surrender is greater than five hundred thousand dollars,\nthe rate shall not exceed one and four hundred twenty-five thousandths\nof one percent, or where the consideration for or value of any other\ngrant, assignment or surrender is less than five hundred thousand\ndollars, the rate shall not exceed one and four hundred twenty-five\nthousandths of one percent; provided, however, that for purposes of a\ntax on the granting of a leasehold interest in real property, the amount\nsubject to tax shall be only such amount as is not considered rent for\npurposes of the tax authorized to be imposed on the occupancy of\ncommercial premises by chapter two hundred fifty-seven of the laws of\nnineteen hundred sixty-three, as amended, and imposed by a city having a\npopulation of one million or more pursuant thereto. In the case of any\nconveyance or transfer of real property or any economic interest therein\nin complete or partial liquidation of a corporation, partnership,\nassociation, trust or other entity, the tax shall be measured by the\nconsideration for such conveyance or transfer or the value of the real\nproperty or interest therein, whichever is greater. Such taxes may be\nimposed on any conveyance or transfer of real property or interest\ntherein where the real property is located in such city regardless of\nwhere transactions, negotiations, transfers of deeds or other actions\nwith regard to the transfer or conveyance take place, subject only to\nthe restrictions contained in section twelve hundred thirty. The payment\nof, and the filing of a return relating to, any such taxes may be\nrequired as a condition precedent (1) to the recording or filing of a\ndeed, lease, assignment or surrender of lease or other instrument, (2)\nto the commencement of any action or proceeding in any court of this\nstate in which any conveyance, transfer or lease described herein is in\nissue, directly or indirectly, or (3) to the receipt in evidence of such\ndeed, lease, assignment or surrender of lease or other instrument in any\nsuch court. In each instance where the tax rate imposed pursuant to this\nsubdivision is two percent, fifty percent of the total amount of such\ntax, including fifty percent of any interest or penalties thereon, shall\nbe set aside in a special account by the commissioner of finance of such\ncity, provided, however, that where the consideration for or value of\nproperty or interest conveyed or transferred includes the amount of any\nnondeductible mortgage, lien or other encumbrance which existed before\nthe conveyance or transfer and remains thereon after such conveyance or\ntransfer, (A) prior to July first, nineteen hundred eighty-two the\nentire amount of tax imposed at a rate not in excess of one percent on\nthe portion of the consideration or value ascribable to such\nnondeductible mortgage, lien or other encumbrance, including any\ninterest or penalties thereon, and fifty percent of the tax on the\nbalance of the consideration or value, including fifty percent of any\ninterest or penalties thereon, shall be set aside in such special\naccount, and (B) on and after July first, nineteen hundred eighty-two\nand before August first, nineteen hundred eighty-nine, fifty percent of\nthe amount of tax imposed at a rate in excess of one percent but not in\nexcess of two percent on the portion of the consideration or value\nascribable to such nondeductible mortgage, lien or other encumbrance,\nincluding fifty percent of any interest or penalties thereon, and fifty\npercent of the tax on the balance of the consideration or value,\nincluding fifty percent of any interest or penalties thereon, shall be\nset aside in such special account. On and after August first, nineteen\nhundred eighty-nine, in each instance where the tax rate imposed\npursuant to this subdivision is in excess of two percent, the portion of\nthe tax, and any interest or penalty thereon, to be set aside in such\nspecial account shall be an amount equal to one percent of the total\nconsideration for or value of the real property or economic interest\ntherein conveyed or transferred, plus any interest or penalty\nattributable to such portion of the tax. There shall also be set aside\nin such special account prior to July first, nineteen hundred eighty-two\nthe total amount of taxes imposed on grants, assignments or surrenders\nof leasehold interests in real property, including any interest or\npenalties thereon; on and after July first, nineteen hundred eighty-two\nand before August first, nineteen hundred eighty-nine, there shall be\nset aside in such special account fifty percent of the amount of taxes\nimposed on grants, assignments or surrenders of leasehold interests in\nreal property, other than a leasehold interest in a one, two or\nthree-family house or an individual dwelling unit in a dwelling which is\nto be occupied or is occupied as the residence or home of four or more\nfamilies living independently of each other, or where the consideration\nfor or value of such grant, assignment or surrender is less than five\nhundred thousand dollars, including fifty percent of any interest or\npenalties thereon. On and after August first, nineteen hundred\neighty-nine, there shall be set aside in such special account, in each\ninstance where the rate of tax on grants, assignments or surrenders of\nleasehold interests in real property is two percent or more, an amount\nequal to one percent of the consideration for or value of the leasehold\ninterest granted, assigned or surrendered, plus any interest or penalty\nattributable to such portion of the tax. Notwithstanding anything in\nthis paragraph (i) to the contrary, in each instance where the tax rate\nimposed pursuant to paragraph (xi) of this subdivision is in excess of\none percent, the portion of tax, and any interest or penalty thereon, to\nbe set aside in such special account shall be an amount equal to\none-half of one percent of the total consideration for or value of the\nreal property or economic interest therein conveyed or transferred, plus\nany interest or penalty attributable to such portion of the tax, and\nthere shall be set aside in such special account, in each instance where\nthe rate of tax imposed under paragraph (xi) of this subdivision on\ngrants, assignments or surrenders of leasehold interests in real\nproperty is in excess of one percent, an amount equal to one-half of one\npercent of the consideration for or value of the leasehold interest\ngranted, assigned or surrendered, plus any interest or penalty\nattributable to such portion of the tax. Moneys in such account shall be\nused for payment by such commissioner to the state comptroller for\ndeposit in the urban mass transit operating assistance account of the\nmass transportation operating assistance fund of any amount of\ninsufficiency certified by the state comptroller pursuant to the\nprovisions of subdivision six of section eighty-eight-a of the state\nfinance law, and, on the fifteenth day of each month such commissioner\nshall transmit all funds in such account on the last day of the\npreceding month, except the amount required for the payment of any\namount of insufficiency certified by the state comptroller and such\namount as he deems necessary for refunds and such other amounts\nnecessary to finance the New York city transportation disabled committee\nand the New York city paratransit system as established by section\nfifteen-b of the transportation law, provided, however, that such\namounts shall not exceed six percent of the total funds in the account\nbut in no event be less than one hundred seventy-five thousand dollars\nbeginning April first, nineteen hundred eighty-six, and further that\nbeginning November fifteenth, nineteen hundred eighty-four and during\nthe entire period prior to operation of such system, the total of such\namounts shall not exceed three hundred seventy-five thousand dollars for\nthe administrative expenses of such committee and fifty thousand dollars\nfor the expenses of the agency designated pursuant to paragraph b of\nsubdivision five of such section, and other amounts necessary to finance\nthe operating needs of the private bus companies franchised by the city\nof New York and eligible to receive state operating assistance under\nsection eighteen-b of the transportation law, provided, however, that\nsuch amounts shall not exceed four percent of the total funds in the\naccount, to the New York city transit authority for mass transit within\nthe city.\n (ii) For purposes of this subdivision, an "economic interest" in real\nproperty shall mean (1) the ownership of shares of stock in a\ncorporation which owns real property, (2) the ownership of an interest\nor interests in a partnership, association or other entity which owns\nreal property, and (3) the ownership of a beneficial interest or\ninterests in a trust which owns real property.\n (iii) For purposes of this subdivision, the terms "transferred" or\n"transfer," when used in relation to an economic interest in real\nproperty, shall include the transfer or transfers of shares of stock in\na corporation, interest or interests in a partnership, association or\nother entity, or beneficial interest or interests in a trust, whether\nmade by one or several persons, or in one or several related\ntransactions, which shares of stock or interest or interests constitute\na controlling interest in such corporation, partnership, association,\ntrust or other entity.\n (iv) "Controlling interest" for purposes of this subdivision shall\nmean: (1) in the case of a corporation, fifty percent or more of the\ntotal combined voting power of all classes of stock of such corporation,\nor fifty percent or more of the fair market value of all classes of\nstock of such corporation; and (2) in the case of a partnership,\nassociation, trust or other entity, fifty percent or more of the\ncapital, profits or beneficial interest in such partnership,\nassociation, trust or other entity.\n (v) Notwithstanding the definition of "controlling interest" contained\nin paragraph (iv) or any provision to the contrary contained in\nparagraph (iii) of this subdivision, in the case of any transfer of\nshares of stock in a cooperative housing corporation in connection with\nthe grant or transfer of a proprietary leasehold, the tax authorized by\nthis subdivision shall apply to (1) the original transfer of such shares\nof stock by the cooperative corporation or cooperative plan sponsor, and\n(2) any subsequent transfer of such shares of stock by the owner\nthereof. Notwithstanding any provisions of this subdivision to the\ncontrary, in the case of a transfer described in clause two of this\nparagraph which relates to an individual residential unit, the\nconsideration for such transfer shall not include any portion of the\nunpaid principal of any mortgage on the real property of the cooperative\nhousing corporation. In determining the tax on a transfer described in\nclause (1) of this paragraph, a credit shall be allowed for a\nproportionate part of the amount of any tax imposed pursuant to the\nauthority of this subdivision and paid upon the conveyance to the\ncooperative housing corporation of the land and building or buildings\ncomprising the cooperative dwelling or dwellings. Such proportionate\npart shall be the amount determined by multiplying the amount of tax\npaid upon the conveyance to the cooperative housing corporation by a\nfraction, the numerator of which shall be the number of shares of stock\ntransferred in a transaction described in clause (1) and the denominator\nof which shall be the total number of outstanding shares of stock of the\ncooperative housing corporation (including any stock held by the\ncorporation). In no event, however, shall such credit reduce the tax on\na transfer described in clause (1) below zero, nor shall any such credit\nbe allowed for any tax paid more than twenty-four months prior to the\ndate on which occurs the first in a series of transfers of shares of\nstock in an offering of cooperative housing corporation shares described\nin clause (1). For purposes of this subdivision, the term "cooperative\nhousing corporation" shall not include a housing company organized and\noperating pursuant to the provisions of article two, four, five, or\neleven of the private housing finance law.\n (vi) In the case of a transfer of an economic interest in any entity\nthat owns assets in addition to real property or interest therein, the\nconsideration subject to tax shall be deemed equal to the fair market\nvalue of the real property or interest therein apportioned based on the\npercentage of the ownership interest in the entity transferred.\n (vii) Any local law enacted pursuant to this subdivision may provide\nfor such credits as are required to avoid multiple taxation.\n (viii) Any city which has imposed the tax authorized by this\nsubdivision prior to its amendment by a chapter of the laws of nineteen\nhundred eighty-one may continue to impose such tax without regard to the\namendments made by such chapter, or may amend the local law imposing\nsuch tax to incorporate therein the provisions authorized by this\nsubdivision as amended by such chapter of the laws of nineteen hundred\neighty-one. If such city amends such local law to include therein the\nadditional provisions authorized by such chapter of the laws of nineteen\nhundred eighty-one, the provisions so added shall not apply to any\ntransfer made pursuant to a written contract entered into prior to the\neffective date of such chapter of the laws of nineteen hundred\neighty-one.\n (ix) Notwithstanding the definition of "controlling interest"\ncontained in paragraph (iv) or anything to the contrary contained in\nparagraph (iii) of this subdivision, in the case of a corporation (other\nthan a cooperative housing corporation), partnership, association, trust\nor other entity formed for the purpose of cooperative ownership of real\nproperty, the tax authorized by this subdivision shall apply to each\ntransfer of: shares of stock in such corporation, interest in such\npartnership, association or other entity or beneficial interest in such\ntrust, in connection with the grant or transfer of a proprietary\nleasehold. Notwithstanding any provisions of this subdivision to the\ncontrary, in the case of a transfer described in this paragraph which\nrelates to an individual residential unit (other than the original\ntransfer of such a unit by the cooperative entity or cooperative plan\nsponsor), the consideration for such transfer shall not include any\nportion of the unpaid principal of any mortgage on the real property of\nsuch corporation, partnership, association, trust or other entity.\n (x) Notwithstanding any other provision of law to the contrary, all\nrevenues resulting from the imposition of the tax authorized by\nparagraph (ix) of this subdivision shall be credited to and deposited in\nthe general fund of the city imposing such tax, but no part of such\nrevenues may be expended unless appropriated in the annual budget of\nsuch city.\n (xi) Notwithstanding anything contained in this subdivision, the tax\nimposed under paragraphs (i), (v) and (ix) of this subdivision on any\ndeed or other instrument or transaction conveying or transferring real\nproperty or an economic interest therein, that qualifies as a real\nestate investment trust transfer, as defined below, shall be imposed at\na rate equal to fifty percent of the otherwise applicable rate. For\npurposes of this paragraph (xi), a real estate investment trust transfer\nshall mean (1) any deed or other instrument or transaction conveying or\ntransferring real property or an economic interest therein to a real\nestate investment trust as defined in section 856 of the internal\nrevenue code (a "REIT") or to a partnership or corporation in which a\nREIT owns a controlling interest immediately following the transaction;\nand\n (2) any issuance or transfer of an interest in a REIT, or in a\npartnership or corporation in which a REIT owns a controlling interest\nimmediately following the issuance or transfer, in connection with a\ntransaction described in subparagraph one of this paragraph.\nNotwithstanding the foregoing, a transaction described in the preceding\nsentence shall not constitute a real estate investment trust transfer\nunless (A) it occurs in connection with the initial formation of the\nREIT and the conditions described in subparagraphs three and four of\nthis paragraph are satisfied, or (B) in the case of any real estate\ninvestment trust transfer occurring on or after July thirteenth,\nnineteen hundred ninety-six and before September first, two thousand\ntwenty-six, the transaction is described in subparagraph five of this\nparagraph in which case the provisions of such subparagraph shall apply.\n (3) The value of the ownership interests in the REIT, or in a\npartnership or corporation in which the REIT owns a controlling\ninterest, received by the grantor as consideration for such conveyance\nor transfer must be equal to an amount not less than forty percent of\nthe value of the equity interest in the real property or economic\ninterest therein conveyed or transferred by the grantor to the grantee\nand such ownership interests must be retained by the grantor or owners\nof the grantor for a period of not less than two years following the\ndate of such conveyance or transfer; provided, however, that in the case\nof the death of the grantor or an owner of the grantor within such two\nyear period, this two year retention requirement shall be deemed to be\nsatisfied notwithstanding any conveyance or transfer of such ownership\ninterests held by such individual as a result of such death. The value\nof the equity interest in such real property or economic interest\ntherein shall be computed by subtracting from the consideration for the\nconveyance or transfer of the real property or economic interest therein\nthe unpaid balance of any loans secured by mortgages or other\nencumbrances which are liens on the real property or economic interest\ntherein immediately before the conveyance or transfer. For purposes of\nthis computation, in the case of a conveyance or transfer of real\nproperty other than a conveyance or transfer of an economic interest in\nreal property, the amount of the unpaid balance of any loans secured by\nmortgages or other encumbrances to be subtracted from consideration is\ndetermined by multiplying the total unpaid balance of any loans secured\nby mortgages or other encumbrances on the real property by the\npercentage of the ownership interest in the real property being conveyed\nor transferred to the grantee. In the case of a transfer of an economic\ninterest in real property, such amount to be subtracted is equal to the\nsum of the following amounts: (I) a reasonable apportionment to the\ninterests in real property owned by the entity of the amount of any\nloans secured by encumbrances on the ownership interests in the entity\nwhich are being conveyed or transferred and (II) the amount of any loans\nsecured by mortgages or other encumbrances on the real property of the\nentity multiplied by the percentage interest in the entity which is\nbeing conveyed or transferred. Provided, however that, for purposes of\nthe computation made pursuant to this subparagraph three, any mortgages\nor other encumbrances on the real property or economic interest therein\nwhich are created in contemplation of the initial formation of the REIT\nor in contemplation of the conveyance or transfer of such real property\nor economic interest therein to the REIT or to a partnership or\ncorporation in which the REIT owns a controlling interest immediately\nfollowing the conveyance or transfer shall not be considered.\n (4) Seventy-five percent or more of the cash proceeds received by such\nREIT from the sale of ownership interests in such REIT upon its initial\nformation must be used: (I) to make payments on loans secured by any\ninterest in real property (including an ownership interest in an entity\nowning real property) which is owned directly or indirectly by such\nREIT; (II) to pay for capital improvements to real property or any\ninterest therein owned directly or indirectly by such REIT; (III) to pay\nbrokerage fees and commissions, professional fees and payments to or on\nbehalf of a tenant as an inducement to enter into a lease or sublease\nincurred in connection with the creation of a leasehold or sublease\npertaining to real property or any interest therein owned directly or\nindirectly by such REIT; (IV) to acquire any interest in real property\n(including an ownership interest in any entity owning real property),\napart from any acquisition to which a reduced rate of tax is applicable\npursuant to this paragraph (without regard to this subparagraph); or (V)\nfor reserves established for any of the purposes described in clause I,\nII or III of this subparagraph. For purposes of this subparagraph, the\nterm real property shall include real property wherever located.\n (5) If a transaction otherwise described in subparagraph two of this\nparagraph occurs other than in connection with the initial formation of\na REIT, the condition set forth in subparagraph four of this paragraph\nshall be disregarded and such transaction shall constitute a "real\nestate investment trust transfer" if the condition set forth in\nsubparagraph three of this paragraph would be satisfied if "fifty\npercent" is substituted for "forty percent" therein.\n For purposes of determining the consideration for a real estate\ninvestment trust transfer taxable under this paragraph (xi), the value\nof the real property or interest therein shall be equal to the estimated\nmarket value as determined by the commissioner of finance of the city of\nNew York for real property tax purposes as reflected on the most recent\nnotice of assessment issued by such commissioner, or such other value as\nthe taxpayer may establish to the satisfaction of such commissioner.\nThis paragraph (xi) shall only apply to real estate investment trust\ntransfers occurring on or after the effective date of this paragraph.\n (xii) Notwithstanding any other provision of this subdivision, in\ndetermining the tax authorized by this subdivision with respect to a\ndeed, instrument or transaction conveying or transferring a one, two or\nthree-family house, an individual residential condominium unit, an\nindividual residential cooperative apartment, or an interest therein,\nthe consideration for such conveyance or transfer shall exclude, to the\nextent otherwise included therein, the amount of any mortgage or other\nlien or encumbrance on the real property or interest therein that\nexisted before the delivery of the deed or the transfer and remains\nthereon after the date of delivery of the deed or the transfer, other\nthan any mortgage, lien or encumbrance placed on the property or\ninterest in connection with, or in anticipation of, the conveyance or\ntransfer, or by reason of deferred payments of the purchase price\nwhether represented by notes or otherwise. Provided, however, that this\nparagraph shall not apply to a conveyance or transfer (1) to a\nmortgagee, lienor or encumbrancer, regardless of whether the grantor or\ntransferor is or was personally liable for the indebtedness secured by\nthe mortgage, lien or encumbrance or whether the mortgage, lien or\nencumbrance is canceled of record, or (2) which qualifies as a "real\nestate investment trust transfer" as defined in paragraph (xi) of this\nsubdivision.\n (c) Privilege taxes on amusement devices operated by coins, tokens or\ncurrency (either generally or upon selected types or classes of such\ndevices), including, but not limited to, juke box, music, skill game,\ndigger, pool or billiard tables, booths providing live entertainment and\nmoving picture and video devices, at a rate not to exceed twenty-five\ndollars per annum for each such device.\n (d) Taxes on the privilege of selling liquor, wine or beer at retail\nfor on or off premises consumption, at a rate or in an amount per annum\nnot in excess of twenty-five percent of the amount of license fees\nprescribed therefor from time to time in the alcoholic beverage control\nlaw.\n (e) Taxes on the use of passenger motor vehicles of a type commonly\nused for non-commercial purposes owned by residents of the city at a\nrate per annum for each such vehicle of not in excess of five dollars if\nsuch vehicle weighs thirty-five hundred pounds or less and not in excess\nof ten dollars per annum if such vehicle weighs more than thirty-five\nhundred pounds; and taxes on the use of trucks, buses and other such\ncommercial motor vehicles used principally in connection with a business\ncarried on within the city, except when owned and used in connection\nwith the operation of a farm by the owner or tenant thereof, at a rate\nper annum for each such vehicle of not in excess of ten dollars.\n (f) (1) Taxes on the sale of containers made in whole or in part of\nrigid or semi-rigid paperboard, fibre, glass, metal, plastic or any\ncombination of such materials, including, but not limited to, barrels,\nbaskets, bottles, boxes, cans, cartons, carrying cases, crates, cups,\ncylinders, drums, glasses, jars, jugs, pails, pots, rigid foil\ncontainers, trays, tubs, tubes, tumblers, and vessels, intended for use\nin packing or packaging any product intended for sale. Such taxes shall\nbe levied upon the seller or supplier of the container who or which\nmakes sales thereof to the person who purchases them (whether filled or\nunfilled) for the purpose of using them in connection with and as part\nof sales at retail or who receives them as containers of products\nintended for sale at retail. Where no tax has been paid by such seller\nor supplier, the buyer or person who purchases the container to use it\nor its contents in making a sale at retail shall be liable for tax\nthereon upon purchasing such container. Notwithstanding the provisions\nof section twelve hundred twenty of this article, sellers and suppliers\nhaving no business situs in the city imposing the tax, who sell such\ncontainers to retailers within the city may pay the tax so as to prevent\nits levy upon such retailers. Such taxes shall be imposed at rates not\nto exceed (i) three cents for each plastic bottle, (ii) two cents for\neach other plastic container, (iii) two cents for each glass container,\n(iv) two cents for each metal container except one cent for metal\ncontainers shown to be made of one metal only. Where a container is made\nof a combination of two or more of the materials with which this\nsubdivision deals, it shall be classified and be taxable as if it were\nmade of that of its component materials for which the following table\nprovides the highest rate:\n fibre and paperboard metal glass plastic\n 1ø 2ø 2ø 3ø\n (2) Any local law enacted pursuant to this subdivision may provide\nthat: (i) metal containers and paperboard or fibre containers which\nhave been impregnated, lined or coated with plastic or other materials\nshall be considered to be classified and taxable as metal containers and\npaperboard containers, respectively; (ii) paperboard or fibre containers\nwith fastenings, tops and/or bottoms made of other materials dealt with\nby this subdivision shall be classified and taxed as paperboard or fibre\ncontainers; (iii) paperboard, metal, or plastic caps that are easily,\nreadily, usually, and customarily separated from the container before\ndisposal shall not be considered part of the container; and (iv)\nnotwithstanding any exception made pursuant to subparagraphs (i), (ii)\nand (iii) of this paragraph, where a preponderantly glass container is\nmade of a combination of taxable materials, the complete separation of\nwhich materials is not easily, readily, usually and customarily effected\nafter use and before disposal, such container shall be taxed one cent in\naddition to the tax otherwise imposed upon it, but in no event shall the\naggregate tax on such container exceed three cents.\n (3) Any local law enacted pursuant to this subdivision may provide\nthat containers sold or furnished containing products intended for use\nin manufacturing processes and not for final retail sale shall be exempt\nfrom such taxes.\n (4) Local laws imposing taxes authorized by this subdivision shall\nprovide for the allowance of credits against such taxes as follows:\n (i) one cent for each taxable container if manufactured with the\nfollowing minimum percentages of recycled material:\n (A) Paperboard and fibre containers: eighty per cent, if made of\n boxboard; thirty per cent if made of foodboard, fibre or\n containerboard.\n (B) Metal containers: thirty per cent if taxed during the period\n beginning July first, nineteen hundred seventy-one and ending June\n thirtieth, nineteen hundred seventy-two; and forty per cent, if taxed\n thereafter.\n (C) Glass containers: twenty per cent if taxed during the period\n beginning July first, nineteen hundred seventy-one and ending June\n thirtieth, nineteen hundred seventy-two; and thirty per cent, if taxed\n thereafter.\n (D) Plastic containers: thirty per cent.\n (ii) one cent for each container of a clearly distinct type, class,\npattern or form taxed during any taxable period provided that sixty per\ncent or more of all the containers of such distinct type, class, pattern\nor form subject to tax during such period were reused containers.\n (iii) Provided that the credits for each container during any taxable\nperiod shall not exceed the amount of taxes due on such container for\nsuch period.\n (5) The fiscal officer of any such city in charge of the\nadministration of any tax imposed pursuant to this subdivision, may be\nauthorized by any local law enacted pursuant to this subdivision, to\nprescribe by regulation, upon the joint recommendation of the chief\nofficer in charge of the department or agency of such city dealing with\nthe interests of consumers and the chief officer in charge of the\ndepartment or agency of such city charged with the duty of waste\ncollection and disposal:\n (i) additional exemptions from and credits against the tax imposed by\nsuch local law; and\n (ii) an additional surtax of no more than one cent per container, to\nbe imposed upon containers made of any of the taxable components dealt\nwith by this subdivision or any combination thereof.\n In granting such exemption or credit or providing for such additional\nsurtax, the above mentioned officers shall take into consideration the\nfollowing qualities and characteristics of the container in question:\n (A) the difficulty the container's material poses to the process of\nmaking recycled material.\n (B) the difficulty of its manufacture from recycled materials.\n (C) the difficulty and relative cost of its disposal.\n (D) any obstacle it poses to consumer protection.\n (E) the degree to which the container can or cannot be reused.\n (F) the slowness, difficulty, and incompleteness with which the\ncontainer degrades in the natural environment, either chemically or\nbiologically.\nAny such exemption, credit or surtax may be revoked by joint action of\nsuch officers, or by local law.\n (6) There shall be exempted from any tax imposed pursuant to the\nauthority of this subdivision, containers used as receptacles for food,\nfood products, beverages, dietary foods and health supplements, sold for\nhuman consumption but not including (i) candy and confectionery, (ii)\nfruit drinks with contain less than seventy per cent of natural fruit\njuice, (iii) soft drinks, sodas and beverages such as are ordinarily\ndispensed at soda fountains or in connection therewith (other than\ncoffee, tea and cocoa) and (iv) beer, wine or other alcoholic beverages.\n (7) When used in this subdivision the words (i) "recycled material"\nmean component materials which have been derived from previously used\nmaterial or from new or old scrap material, (ii) "retail sale" or "sale\nat retail" means a sale to any person for any purpose other than for\nresale as such or as a physical component part of tangible personal\nproperty, (iii) "taxable period" means each calendar month or such other\nperiods as the official administering any tax enacted pursuant to this\nsubdivision may provide for by regulation, (iv) "one metal only" means\nmetal with such minimum amounts of alloys as the officer charged with\nthe administration of any local law enacted pursuant to this subdivision\nshall provide by regulation, but shall not include metal which has been\nplated or lined with another metal. In formulating such regulations such\nofficer shall consult with the chief officer in charge of the department\nor agency of such city dealing with the interests of consumers and the\nchief officer in charge of the department or agency of such city charged\nwith the duty of waste collection and disposal and shall consider the\ndifficulty of using the metal in the making of recycled material and the\navailability of or technical feasibility of manufacturing other metals\nfor the same purpose and use as the metal in question but with a lower\nalloy content.\n (g) A tax not to exceed fifteen dollars per annum per vehicle to be\npaid by the owner thereof: (1) for every motor vehicle registered or\nrequired to be registered pursuant to subdivision six of section four\nhundred one of the vehicle and traffic law if such vehicle is owned by\n (i) one or more natural persons, other than a firm, co-partnership,\nlimited liability company, trustee or trustees conducting a business or\nassociation, who, or one of whom: (A) at the time when he makes\napplication for the registration, re-registration or renewal thereof of\nsuch motor vehicle is domiciled in the city, unless he maintains no\npermanent place of abode in the city, maintains a permanent place of\nabode elsewhere, and during the period of one year next preceding the\ndate upon which such application is made, spent in the aggregate not\nmore than thirty days in the city, or (B) at the time when he makes such\napplication, is not domiciled in the city, but maintains a permanent\nplace of abode in the city and, during the period of one year next\npreceding the date upon which such application is made, spent in the\naggregate more than one hundred and eighty-three days in the city,\nunless such individual is in the armed forces of the United States; or\n (ii) a person, firm, co-partnership, limited liability company,\ntrustee or trustees conducting a business or association, or a\ncorporation who or which at the time when such owner makes application\nfor registration, re-registration or renewal thereof of such motor\nvehicle, regularly keeps, stores, garages or maintains such motor\nvehicle in the city; and\n (2) for every motor vehicle owned by a person, firm, partnership,\nlimited liability company, association or corporation engaged in the\nbusiness of renting or leasing motor vehicles to be operated upon the\npublic highways for carrying passengers registered or required to be\nregistered pursuant to any provision of section four hundred one of the\nvehicle and traffic law, which vehicle at the time when such owner makes\napplication for registration, re-registration or renewal thereof is\nregularly kept, stored, garaged or maintained in the city including such\nvehicles which have been rented or leased by the owner and are in\npossession of lessees when such application for registration,\nre-registration or renewal is made.\n (3) The payment of such tax shall be a condition precendent to the\nregistration, re-registration or renewal therof of such motor vehicle\nand to the issuance of any certificate of registration and plates or\nremovable date tag specified in subdivision three of section four\nhundred one and in sections four hundred three and four hundred four of\nthe vehicle and traffic law, and no such certificate of registration,\nplates or tag shall be issued unless such tax has been paid. The\ncommissioner of motor vehicles shall not issue a registration\ncertificate for any motor vehicle for which the registrant's address is\nwithin any such city, except upon proof, in a form approved by the\ncommissioner of motor vehicles, that such tax, if imposed by such city,\nhas been paid, or is not due, with respect to such motor vehicle.\n (h) Notwithstanding the provisions of this article or of any other\nlaw, any local law adopted by a city of one million or more, imposing a\ntax authorized by subdivision (g) of this section may provide that such\ntax shall be administered and collected by the commissioner of motor\nvehicles or his agents. In the event that such local law does so\nprovide, such tax shall not be imposed upon an application for the\nre-registration of a motor vehicle, and further, the commissioner of\nmotor vehicles shall enter into an agreement with the finance\nadministrator or other appropriate fiscal officer of such city, which\nagreement shall govern the administration and collection of any such tax\nand which agreement shall have the force and effect of a rule or\nregulation of the commissioner and shall be filed and published in\naccordance with any statutory requirements relating thereto.\nNotwithstanding any other provision of law, such agreement shall provide\nfor the exclusive method of collection, custody and remittal of the\nproceeds of any such tax; for the payment by such city of the reasonable\nexpenses incurred by the department of motor vehicles in connection with\nthe collection and administration of any such tax; for the finance\nadministrator or other appropriate fiscal officer, or a duly designated\nrepresentative, upon his request, not more frequently than once in each\ncalendar year at a time agreed upon by the state comptroller, to audit\nthe accuracy of the payments, distributions and remittances to such\nfinance administrator or other appropriate fiscal officer made pursuant\nto this subdivision; and for such other matters as may be necessary and\nproper to effectuate the purposes of such agreement.\n (i) A tax on admission charges for admission to motion picture\nexhibitions or live dramatic, choreographic or musical performances,\nwhether at a theatre, opera house, concert hall or other place, at a\nrate not to exceed three percent. However, such a tax shall not apply to\nany admission charge to a motion picture exhibition for admission of a\nperson twelve years of age or under.\n (j) (1) A tax on the transfer of a taxicab license, or interest\ntherein, at a rate not to exceed eight percent of the consideration\ngiven for such transfer.\n (2) The tax shall be imposed on the transferee, but any local law\nimposing the tax authorized by this subdivision may provide that the\ntransferor shall also be liable for the payment of such tax in the event\nthat the amount of tax due is not paid by the transferee.\n (3) Notwithstanding any other law to the contrary, no transfer of a\ntaxicab license shall be effective until any tax imposed pursuant to the\nauthority of this subdivision has been paid.\n (4) Where there is a transfer of the economic interest in a taxicab\nlicense effected by the sale of shares of stock of a corporation which\nholds the taxicab license, or by the transfer of an interest or\ninterests in a partnership or association which holds the taxicab\nlicense, any local law enacted pursuant to the authority of this\nsubdivision may provide that such a transfer shall be treated as a\ntransfer of the taxicab license or interest therein, subject to the tax\nauthorized by this subdivision.\n (5) Where there is a transfer of a taxicab or other property in\nconjunction with the transfer of a taxicab license or interest therein,\nsuch local law may provide that the tax shall be computed on the total\nconsideration for the transfer of the license, or interest therein, the\ntaxicab and any other property so transferred less the market value of\nsuch taxicab and such other property.\n (6) When used in this subdivision, the following terms shall mean:\n (i) "Transfer." Any transfer of interest whether or not such interest\nconstitutes title, or possession, or both, exchange or barter, rental,\nlease, or license to use, conditional or otherwise, in any manner or by\nany means whatsoever for a consideration, or any agreement therefor.\n (ii) "Taxicab." A motor vehicle carrying passengers for hire in a city\nimposing the tax authorized by this subdivision, duly licensed as a\ntaxicab by such city, and permitted to accept hails from passengers in\nthe street.\n (iii) "Taxicab license." A license issued by the taxi and limousine\ncommission in such city, or its successor agency, to operate a taxicab.\n (k) Any local law imposing a tax on the gross receipts (or gross\nincome or gross operating income) from sales of electricity, gas or\nsteam, or sales of delivery services for any of the foregoing, to\npersons within such city enacted pursuant to subdivision (a) of this\nsection may provide for a deduction from gross receipts (or gross income\nor gross operating income) of all receipts derived from the sale of\nelectricity, gas or steam, or sale of delivery services for any of the\nforegoing, to non-residential energy users of such electricity, gas or\nsteam, or from the sale of delivery services to a public utility service\noperated by such city in accordance with a local law adopted pursuant to\narticle fourteen-A of the general muncipal law or from the sale of\ndelivery services to the power authority of the state of New York, in\nconnection with the sale of electricity, gas or steam to non-residential\nenergy users of such electricity, gas or steam, except that no deduction\nshall be allowed for receipts derived from sales of electricity, or\nsales of delivery services for electricity, to or by an electricity\nredistributor, or sales of delivery services for electricity to a public\nutility service operated by such city in accordance with a local law\nadopted pursuant to article fourteen-A of the general municipal law or\nsales of such delivery services to the power authority of the state of\nNew York, in connection with the sale of electricity by such public\nutility service or such authority to an electricity redistributor,\nunless such electricity redistributor has obtained a certification of\neligibility pursuant to a local law enacted in accordance with the\nauthorization contained in article two-G of the general city law. No\nsuch deduction authorized herein shall affect the computation specified\nin subdivision four of section three contained in section one or\nsubdivision (a) of section one hundred three contained in section two of\nchapter seven hundred seventy-two of the laws of nineteen hundred\nsixty-six, as amended, with regard to vendors of utility services. For\npurposes of this subdivision, the terms "non-residential energy user"\nand "electricity redistributor" shall have the same meaning as ascribed\nby article two-G of the general city law.\n (l) In addition to any privilege taxes on amusement devices authorized\nby subdivision (c) of this section, there shall be authorized an\nadditional privilege tax on amusement devices operated by coins, tokens\nor currency (either generally or upon selected types or classes of such\ndevices) including, but not limited to, juke box, music, skill game,\ndigger, pool or billiard tables, booths providing live entertainment,\nand moving picture and video devices, at a rate not to exceed one\nhundred fifty dollars per annum for each such device.\n (m) Any city in this state having a population of one million or more,\nacting through its local legislative body, is hereby authorized to adopt\nand amend local laws which conform the local law of such city to the\nprovisions of law set forth in part U3 of a chapter of the laws of two\nthousand three amending the general business law and other laws relating\nto implementing the state fiscal plan for the 2003-2004 state fiscal\nyear, as proposed in legislative bill numbers S. 1406-B and A. 2106-B,\nas amended, with such modifications as may be necessary to adapt such\nprovisions to such local law so that such local law is substantially\nsimilar to the law of the state.\n